Financeroll.com - Gold traded within 0.2 percent of its record in Asia as the dollar fell for a third day, driving investors to buy bullion to preserve their wealth. The metal jumped to a record in Shanghai.
Gold futures climbed for an eighth straight day, heading for the longest rally since the period ending Jan. 4, 2006, after the Dollar Index, a gauge of the greenback’s value against six major currencies including the euro and yen, tumbled to a 15-month low today. Spot gold has risen 26 percent this year, heading for a ninth annual gain, the longest winning streak since at least 1948, as the index slumped 7.8 percent.
Gold for immediate delivery rose as much as 0.3 percent to $1,108.95 an ounce, before trading little changed at $1,106.20 at 9:35 a.m. Singapore time. The metal reached an all-time high of $1,111.20 an ounce Nov. 9.
Holdings in the SPDR Gold Trust, the biggest exchange- traded fund backed by bullion, were unchanged at 1,114.44 metric tons yesterday, after climbing the most in a month on Nov. 9.
December-delivery gold on the Comex division of the New York Mercantile Exchange added as much as 0.6 percent to $1,109.20 an ounce, 0.2 percent less than its Nov. 9 record of $1,111.70. June-delivery gold in Shanghai gained as much as 0.7 percent to 242.64 yuan a gram ($1,106 an ounce), the highest price since futures started trading in January 2008.
Governments worldwide including the U.S. have cut interest rates and boosted spending to fight the worst recession since World War II, spurring some investors to buy bullion as a hedge against potential inflation and currency debasement.
India’s central bank last week bought 200 tons of gold from the International Monetary Fund for $6.7 billion, prompting analysts at Bank of America Merrill Lynch, Societe Generale and Barclays Capital to forecast further central bank buying. Central banks are the biggest holders of gold.
Among other precious metals for immediate delivery, silver rose 0.2 percent to $17.375 an ounce, platinum gained 0.4 percent to $1,357.50 an ounce, while palladium was unchanged at $333.75 an ounce.
